The Market Ticker
Commentary on The Capital Markets- Category [Federal Reserve]

Oh Good Lord....

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects that, with appropriate policy accommodation, economic activity will expand at a moderate pace, with labor market indicators moving toward levels the Committee judges consistent with its dual mandate. The Committee sees the risks to the outlook for economic activity and the labor market as nearly balanced. The Committee expects inflation to rise gradually toward 2 percent as the labor market improves further and the transitory effects of lower energy prices and other factors dissipate. The Committee continues to monitor inflation developments closely.

Yeah, right.

Transitory energy price factors eh?  We'll see on that one; yes, it may well be transitory but if it is the snapback is likely to be really ugly (although a second-half 2015 or later story.)

I find the Fed and Yellen's press conference amusing in the extreme.  Of course the usual pump squad is all over the release trying to further crank up the stock market -- which doesn't surprise me at all, with the SPX now up 40 handles (2%.)

The fun part of this is that (1) thus far it hasn't done a damn bit of good other than cranking the stock and bond markets and (2) there's no evidence that it will in the future.

So what you have here is basically wishful thinking, but heh, candy-crapping Unicorns are all the rage these days......

Go ahead and believe, if you wish..... the fact of the matter is that the market has been in trouble of late not because of The Fed but rather because of weakening global demand that no longer can be denied as it is showing up in energy consumption.

Folks, it's simple when you boil it all down in terms of actual economic activity and forward views of same, as I pointed out in Leverage:  Behind every unit of GDP is a unit of energy.

View this entry with comments (registration required to post)

Main Navigation
Full-Text Search & Archives
Archive Access
Get Adobe Flash player
Legal Disclaimer

The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.


The author may have a position in any company or security mentioned herein. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.

Market charts, when present, used with permission of TD Ameritrade/ThinkOrSwim Inc. Neither TD Ameritrade or ThinkOrSwim have reviewed, approved or disapproved any content herein.

The Market Ticker content may be reproduced or excerpted online for non-commercial purposes provided full attribution is given and the original article source is linked to. Please contact Karl Denninger for reprint permission in other media or for commercial use.

Submissions or tips on matters of economic or political interest may be sent "over the transom" to The Editor at any time. To be considered for publication your submission must include full and correct contact information and be related to an economic or political matter of the day. All submissions become the property of The Market Ticker.